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Johnston Company Wants to Double Production of Product X from 1,000

Question 19

Multiple Choice

Johnston Company wants to double production of Product X from 1,000 units to 2,000 units.The variable manufacturing cost per unit is $10.The variable nonmanufacturing cost per unit is $20.There are no fixed costs.The selling price per unit is $50.What is the incremental cost of the proposed change?


A) $10,000
B) $20,000
C) $30,000
D) $60,000

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